fO' 


THE  CAUSE 


THE  DECLINE  OF  REAL  ESTATE,® 


IN  THE 


CITY  OF  CHARLESTON, 


(5^ 
G%(p 

iXS 

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fc&o 

THE  REMEDY  FOR  THE  EVIL,  BEING  A SERIES  OF^A 
ARTICLES  ORIGINALLY  PUBLISHED  IN  THE  EVE- 

(M 

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WITH 


p, 

§ro5 

c-ss 

■ i 


NING  NEWS  UNDER  THE  SIGNATURE  OF 

“FREE  TRADE” 


BY  A CHARLESTONIAN. 


C'T^O 

favorable 

^92’ 



Cy-Q) 

* Where  business  is  doubled,  the  expense  of  management  may  notincrease  more  than  25YAi;^ 
)^per  cent,  or  in  some  instances  not  at  all  This  isslrikinai'y  illustrated  in  the  Passenger  'I’rains.^pY^^ 
, ' where  the  daily  expense  of  the  Trams  may  remain  the  same,  though  the  Passengers,  from  the  vt®  CA 
power  of  the  Locomotive,  may  be  even  doubled  or  quadruple  ! . so  tha'  when  a sufficient  num-oJ^')/ 
liber  offers  to  pay  expenses,  the  fare  of  every  additional  travellei  is  clear  profit,  subject  to 
deduction.”  ‘ COL  J.^MES  GaDSDKN,  ■ ^ 

President  of  the  S-  C.  Rail  Road  ; Appendix  to  Rail  Report,  1842.  CV-iC'> 


w> 


Q “ Every  measure,  which  promotes  internal  circulation,  is 


to  national  wealth.” — Say:  Political  Economy. 


^©2 

GlSi' 


(dXs' 


CHARLESTON: 

PRINTED  BY  J.  B.  NIXON,  MEETING  ST. 


3^5 


\ 


THE  CAUSE 

OF  THE  DECLINE  OF  REAL  ESTATE,  IN  THE 
CITY  OF  CHARLESTON. 


No.  1. 

Importance  of  Rail  Roads.  Results  of  high  and  low  fare  illus- 
trated, ^c.  ^c. 

"J’he  people  of  South  Carolina  seem  to  be  vitally  alive  to  theimpor-^ 
tance  of  Rail  Roads  in  the  various  sections  of  the  State  as  a means  of 
developing  their  resources,  and  all  appear  ready  and  willing  to  act 
except  the  holders  of  real  estate  in  the  City  of  Charleston,  who  view 
with  apathy  and  indifference  all  the  efforts  that  are  about  being  made 
to  bring  to  bear,  upon  their  almost  crushed  resources,  the  invigorating 
influences  of  these  modern  regenerators. 

This  apathy  and  indifference  have  a legitimate  cause  which  we  will 
try  to  show  in  the  course  of  the  present  communication. 

The  owners  of  real  estate  in  the  city  of  Boston  who  have  gone  into 
Rail  Roads  largely,  are  under  the  firm  belief  that  the  real  estate  in  that 
city  alone  has  increased  full  thirty  millions  of  dollars,*  being  about  the 
whole  cost  of  all  the  rail  roads  in  Massachusetts,!  and  that,  that  in- 
crease is  solely  to  be  attributed  to  their  introduction. 

Our  experience,  however,  we  are  sorry  to  say,  is  just  the  reverse 
of  that  of  Boston,  and  so  far  from  any  increase,  real  estate  has  fallen 
in  this  city  within  the  last  five  years  fully  fifty  per  cent. 

A very  important  question  arises  as  to  the  reasons  for  this  great 
difference  in  the  operation  of  the  same  causes  to  produce  such  con- 
trary results,  and  we  think  an  examination  of  the  facts  in  the  case 
will  at  once  show  the  origin  of  the  evil  and  its  appropriate  remedy. 
It  will  be  found  then,  that  upon  all  the  rail  roads  leading  into  Boston 
facilities  are  offered  to  every  person  to  travel ; — the  fares  are  put 
down  at  the  very  lowest  rates,  and  all  without  distinction,  from  the 
highest  to  the  lowest  in  pecuniary  resources,  are  carried  at  the  same 
rate.  There  is  no  difference  made  between  the  man  whose  means 
will  only  allow  him  to  purchase  a single  ticket  at  a time,  and  him  who 
can  afford  to  purchase  them  by  the  hundred. 

The  consequence  is,  every  body  travels  on  their  railroads,  and  from 
everybody  travelling  they  are  enabled  to  pay  their  stockholders  good 

* Value  of  Real  Estate  in  Boston  in  1847 $97,764,500 

" Personal  ••  64,595,900 — $162,360,400,00 

Value  of  Real  Estate  in  Boston  in  1841 $62,063,000 

« Personal  « « 36,043,600—  98,106,600,00 

Increase  in  the  Real  and  Personal  Estate  of 

Boston,  since  1841  - - - - $ 64,253,800,00 

fCostof  all  the  Rail  Roads  in  Massachusetts, 

say  707  miles  - ...  $30; 244., 9 27,00 


P 


2 


dividends,  while  they  accommodate  the  public,  and  benefit  every 
portion  of  the  community.  But  mark  the  opposite  policy  pursued 
by  us.  On  our  South  Carolina  road  the  rich  man  and  his  grown 
family  are  carried  tho  whole  length  of  the  road,  either  to  Columbia  or 
Hamburg,  for  one  dollar  the  trip ^ or  less  than  three-quarters  of  a cent 
per  mile,  his  children  and  servants  half  that  price  or  less  than  three- 
eights  of  a cent  per  mile  cheaper  than  the  cheapest  rail  road  in  the 
known  world;  while  the  poor  man,  who  cannot  afford  to  purchase 
rail  road  tickets  by  the  quantity  is  charged  nearly  seven  times  more, 
or  six  dollars  and  seventy-five  cents  per  trip.  What  is  the  conse- 
quence ? Why  very  few  people  travel  on  the  road,  except  they  can- 
not possibly  help  themselves.  Thousands  of  men,  women  and  chil- 
dren in  this  city  never  were  on  a rail  road,  and  the  reason  is  a plain 
one — they  cannot  afford  it,  and  they  consequently  stay  at  home. 
'I'hroughout  the  whole  region  of  country  that  the  road  passes  the 
same  difficulties  present  themselves — the  fare  is  too  high,  and  hey 
Stay  at  home. 

Now  need  we  wonder,  under  such  a policy,  that  real  estate  in  the 
business  streets  of  this  city  has  fallen  50  per  cent,  or  that  the  whole 
retail  business  of  the  place  is  fast  dwindling  away  ? 

Why  surely  not.  See  the  result  of  this  “high  price  policy  for  the 
poor  man,”  and  “low  price  policy  for  the  rich  one.”  The  rich  man 
will  travel  any  how,  charge  what  you  may — the  poor  man  cannot 
move,  because  you  put  it  beyond  his  means. 

Let  us  suppose  a farmer  to  sit  down  and  calculate  where  he  can 
buy  his  necessaries  to  the  best  advantage.  He  makes  his  purchases 
twdce  a year — in  the  Fall  and  in  the  Spring — and  one  with  another 
will  average  about  fifty  dollars  each  to  spend.  He  finds  that  if  he 
decides  upon  taking  the  rail  road,  (and  while  seeing  “the  Queen  City 
of  the  South,”)  to  make  his  purchases  in  Charleston,  it  will  cost  him 
full  fifteen  dollars  expenses,  leaving  him  but  $35  with  which  to  obtain 
his  necessaries.  He  asks  himself  the  question  : Cannot  I buy  more 
goods  in  Columbia,  or  Augusta,  or  any  interior  town  with  fifty  dollars 
than  I can  purchase  in  Charleston  for  thirty-five  dollars  ? and  the 
question  is  readily  answered,  assuredly  I can.  The  farmer  lays  out 
his  money  in  the  country  town — the  rail  road  loses  his  travel,  and  the 
retailer  in  Charleston  a customer. 

Is  it  any  wonder  then,  that  the  retailers  of  Charleston  find,  not- 
withstanding their  rents  have  been  reduced  fifty  per  cent,  they  are 
still  going  behind  hand,  and  must,  if  this  system  continues,  call  for  a 
still  further  reduction — that  whenever  yoiv  talk  to  any  man,  holding 
real  estate  in  Charleston,  about  subscribing  to  a rail  road,  he  begins 
to  show  evident  symptoms  of  alarm,  as  if  you  had  made  a proposition 
to  him  that  would  ruin  him  outright  ? 

It  is  impossible  for  the  retailers  of  this  ciiy  to  compete  with  those 
of  Augusta  and  Columbia,  while  the  rail  road  levies  a tax  of  thirty 
per  cent  protection  to  the  country  storekeepers. 

The  remedy  is  a simple  one — a reduction  of  fare,  and  uniform 
rates  for  all.  Now  as  to  what  that  reduction  should  be.  It  will  be 
seen  by  what  we  have  already  said  they  carry  some  passengers  now 
for  three  quarters  of  a cent  per  mile.  Wc  think  that  too  cheap,  and 


3 


would  suggest  a rale  double  of  that — namely,  a cent  and  a half  per 
mile.  At  that  rate  we  have  not  a doubt  they  would  carry  two  hun- 
ij^dred  thousand  passengers  the  next  12  months,  instead  of  64,000 
j;" which  they  carried  the  last  year  ; and  we  can  then  hope  to  lay  the 
pattering  unction  to  our  souls,  that  Charleston  may  yet  become  “the 
^Queen  City  of  the  South.” 

^ . 


tc 


No.  2. 


Effects  of  low  prices  on  Consumption  : increase  of  travel  by  reduc- 
tion of  fare,  ^c.  ^'c. 

In  our  last  article  we  stated  that  real  estate  in  the  business  streets 
of  tlie  city,  had  fallen  50  per  cent  within  tlie  last  five  years,  that,  that 
reduction  was  to  be  attributed  to  the  high  price  of  fare  on  our  Rail- 
road, levying  a tax  of  30  per  cent ; whicli  tax  operated  as  an  incubus 
on  the  retail  business  of  this  city  ; that — that  department  of  trade 
was  fast  dwindling  away,  causing  inevitable  ruin  to  the  holders  of  real 
estate,  and  that  the  remedy  was,  a reduction  of  fare  on  the  rail- 
road. We  will  now  proceed  to  show  the  reasons  for,  and  the  advan- 
tages of  this  reduction. 

Before  entering  upon  this  part  of  the  subject  however,  we  will  give 
a few  facts  illustrative  of  the  axiom  held  by  the  free  traders,  “ that  a 
reduction  of  price  (by  placing  it  within  the  power  of  the  greater  num- 
ber) increases  consumption  in  a greatly  increased  ratio  in  other 
words,  that  reduced  fare  augments  travel,  and  increases  trade. 

In  1784,  a reduction  of  duty  of  33  per  cent,  was  made  in  Great 
Britain  on  Tea  ; the  consequence  was,  the  consumption  increased,  on 
an  average,  taking  the  three  years  previous  to,  and  after  as  a compari- 
son,270  per  cent. 

In  1839,  the  rates  of  admission  to  the  tower  of  London,  were 
reduced  over  80  per  cent,  the  number  of  visitors  increased  750  per 
cent. 

At  the  same  time  the  stamp  duty  on  newspapers  was  reduced,  mak- 
ing a difference  in  price  20  per  cent  less,  the  increase  in  the  circulation 
was  fifty  per  cent. 

A reduction  in  the  advertisements  duty  of  33  per  cent,  increased 
the  number  of  advertisements  65  per  cent,  < 

Many  similar  instances  could  be  given.  We  will  adduce  but  one 
more  of  the  effects  of  a reduction  on  Railroads. 

From  a comparison  made  of  the  returns  of  ten  Railroads  in  Massa- 
chusetts, viz  ; the  “Worcester,”  “Western,”  “Providence,”  “Taun- 
ton,” “New-Bedford.”  “Fall  River,”  “Eastern,”  “Boston  and  Maine,” 
“Lowell”  and  “Nashua,”  taking  the  two  years,  1845  and  1846, 
it  will  be  found  that  a reduction  of  5 per  cent  (on  passengers  and 
freight  included)  being  made,  the  expenses  were  reduced  1:1  percent, 
and  the  receipts  of  the  road  increased  over  1 1 per  cent. 

On  an  examination  of  the  passenger  business  that  was  done  on  the 
South  Carolina  Rail  Road,  in  1846,  it  will  be  found  (see  Annual  Re- 
port for  that  year,  fable  4),  that  the  number  of  passengers  cajried 


4 


during  the  year,  was  64,136,  but  this  number  it  must  be  borne  in  mind, 
was  not  carried  at  five  cts.  per  mile.  By  reference  to  the  monthly 
list  of  passengers,  it  will  be  seen  that  in  the  month  of  April,  they 
carried  eleven  thousand  two  hundred  and  sixty-one  passengers  more, 
than  the  average  of  the  other  eleven  months. 

These  extra  passengers  were  obtained  by  the  Rail  Road  building  a 
house  and  giving  land  to  the  Methodist  denomination  to  hold  their  an- 
nual camp  meeting.  Not  one  of  these  passengers  would  have  been 
obtained  at  the  five  cent  price,  for  that  price  would  deprive  many  of 
their  members  from  attending,  and  the  meeting  would  have  been  held 
elsewhere.  The  charge  was  therefore  reduced  to  three  cents  per  mile 
on  that  occasion,  which  accounts  for  the  great  increase. 

So  when  we  deduct  this  amount  we  find  the  number  of  five  cent 
passengers  including  the  one  hundred  and  fifty  ticket  purchaser  who 
travels  at  three  quarters  of  a cent  per  mile  was  but  52,875,  up  and 
down,  equal  to  26,438  persons, — not  the  population  of  Charleston 
and  its  suburbs  ! 

But  say  some,  this  is  doing  remarkably  well ; we  are  not  a travel- 
ling people.  We  acknowledge  we  are  not  a Rail  Road  travelling 
people  at  home,  because  the  Jare  is  too  high. 

Let  any  one  acquainted  in  the  Stale  note  the  number  of  South 
Carolinians  travelling  in  the  Northern  States  as  we  have  done,  and 
he  will  change  his  opinion  about  their  not  being  a travelling  people. 

To  form  some  idea  of  the  amount  of  Rail  Road  travelling  in  other 
places,  look  at  the  returns  of  some  of  the  Rail  Roads. 

In  England  with  a population  of  sixteen,  millions,  (where  there 
are  millions  of  operatives,  hundreds  of  thousands  of  paupers  and  of 
domestics  who  are  about  as  free  to  travel  as  our  negroes,)  the  number 
of  passengers  booked  in  1845  was  33,791,253 — nearly  thirty-four 
millions,  or  more  than  double  the  number  of  all  the  men,  women,  and 
children,  in  the  whole  of  England. 

The  population  of  Massachusetts  is  less  than  800,000.  The  num- 
ber of  passengers  carried  on  her  roads  the  last  year  was  over  four 
millions — 4,062,934,) — or  more  than  five  times  the  number  of  men, 
women,  and  children,  in  the  whole  State. 

But  It  will  be  said — Ah  ! but  the  people  of  Massachusetts  are  a 
travelling  people. 

Well,  let  us  see  how  long  they  have  been  so. — When  the  Boston 
and  Lowell  Rail  Road  (opened  in  1835)  was  projected,  the  friends  of 
the  enterprise  estimated  the  number  of  passengers  they  would  carry 
per  annum  at  37,500.  The  idea  was  ridiculed.  In  the  year  1846 
they  carried  on  that  road  400,886  passengers. 

The  projectors  of  the  Boston  and  Worcester  Road  estimated  the 
number  of  passengers  they  would  carry  at  23,500  per  annum.  The 
number  carried  in  1846  was  470,319. 

On  the  Eastern  Road  the  estimated  number  of  passengers  to  be 
carried  was  121,700.  The  number  carried  in  1846  was  786,756. 

On  the  Fitchburg  road,  built  on  a speculation  by  the  merchants  of 
Boston,  who  liad  all  the  experience  of  what  other  Rail  Roads  had 
done  up  to  the  year  1845,  (the  road  was  opened  March,  1845,)  the 


estimated  number’^of  passengers  to  be  carried  per  annum  was  72,000. 
The  number  carried  in  1846  was  327,034. 

So  we  see  from  this,  it  has  only  been  lately  found  out  that  the  people 
of  Masachusetts  are  a travelling  people. 

Wkh  these  facts  before  us,  are  we  extravagant  when  we  say  that 
with  a reduction  {equal  to  double  the  price  now  charged  those  who 
can  afford  to  purchase  one  hundred  and  fifty  tickets,  and  as  much  as 
is  now  charged  the  purchaser  of  twenty  tickets,  viz  two  dollars,) 
the  number  of  passengers  would  be  increased  to  two  hundred  thousand. 

In  our  next  we  shall  show  where  the  people  are  to  come  from,  and 
the  effects  of  their  coming  upon  the  prosperity  of  Charleston. 


No.  3. 

Answers  the  question — where  are  the  passengers  to  come  from,  if 

the  S.  C.  Bail  Boad  lowers  the  fare  to  Tivo  Dollars  through  ? 

lu  our  last  we  statedjthat  the  S,  Carolina  RaifRoad,  at  the  reduced 
fare  we  proposed,  would  command  a travel  of  two  hundred  thou- 
sand PASSENGERS,  and^promised  incur  next  to  show  where  they  were 
to  come  from,  and  the  effect  of  their  coming  on  the  prosperity  of  his 
city. 

We  now  propose  to  makegood  that  promise.  We  will  remark, 
however,  in  the  outset,  that  upon  this  first  part  of  our  showing  hinges 
the  whole  controversy  between  the  advocates  of  a high  and  alow  fare. 

It  would  be  the  sheerest  nonsense  in  the  world  to  talk  of  a reduc- 
tion of  fare,  if  there  was  not  a population  to  take  advantage  of  the 
facilities  offered  : on  the  other  hand,  it  is  good  common  sense  to  call 
loudly  for  it,  if  we  know  there  is  a population  on  the  line  of  road,  and 
near  it ; one  tributary,  and  one  contiguous  to  it,  sufficient,  not  only  to 
overcome  the  reduction  which  we  have  proposed,  but,  in  reality,  to 
increase  its  nett  income.  With  these  remarks  we  will  proceed  to 
give 

1st.  The  statistics  of  the  ivhite  population  of  those  districts  on 
the  line  of,  and  near  the  road. 

2nd.  The  white  population  of  those  districts  in  our  State  that  may 
be  considered  tributary — or  one  source  of  the  through  travel. 

3rd.  The  white  population  of  those  counties  in  Georgia  which 
(by  rail  roads  in  their  State)  may  be  said  to  be  contiguous  to  the  South 
Carolina  Road  ; or  another  source  of  the  through  travel. 

To  facilitate  the  detection  of  any  error  which  may  be  supposed  to 
exist  in  our  statement,  we  will  give  the  names  of  the  districts  men- 
tioned under  our  first  head,  separately,  with  the  amount  of  their  white 
population. 


6 


Districts  white  pop' n in  1840. 

Districts  it 

'Me pop' n in  1840. 

Colleton, 

5,874 

Fairfield, 

7,587 

Barnwell, 

10,533 

Newberry, 

8,208 

Orangeburg, 

6,321 

Edgefield, 

15,020 

Lexington, 

7,401 

Darlington, 

7,169 

Richland, 

5,326 

Chesterfield, 

5,537 

Sumter, 

8,644 

Lancaster, 

5,515 

Total  white  population  in  1840, 

Kershaw, 

3,988 

113,643 

To  this  add  those  districts  in  our  own  State  which, 
under  our  2nd  head,  we  call  tributary,  viz  : Abbe- 
ville, Laurens,  Union,  Spartanburg,  York,  Chester, 
Anderson,  Greenville  and  Pickens,  containing 
whites  107,973 

x\nd  then  the  Counties  in  Georgia  under  our  3d  head, 
viz  : Richmond,  Columbia,  Warren,  Wilkes,  Ogle- 
thorpe, Clarke,  Hancock,  Taliaferro,  Greene,  De- 
Kalb,  Morgan,  Walton,  Newton,  Burke,  Jefferson, 

Lincoln,  Franklin,  Elbert,  and  Jackson,  containing 
whites,  85,577 


Total  white  population  in  1840,  307,193 

Thus  we  have  the  elements  for  our  calculation.  Now  let  us  see  if 
we  cannot  make  out  our  case. 

According  to  the  annual  report  of  the  South  Carolina  Rail  Road  for 
1846,  (table  4,)  we  find  that  in  the  month  of  April  of  that  year,  they 
carried  eleven  thousand  more  passengers  than  they  did  on  an  average 
of  the  other  eleven  months.  These  extra  passengers  were  carried  in 
the  course  of  ten  days,  (being  the  period  of  time  in  which  the  Metho- 
dist denominations  held  their  annual  camp  meeting,)  and  at  a charge  of 
3cen  ^ t er  mile  for  whites. 

Now,  we  ask,  if  in  ten  days,  at  3 cents  per  mile  for  whites,  (the  dis- 
tance being  16  miles  and  the  charge  59  cents,)  and  for  an  object  in 
which  only  one  denomination  were  specially  interested,  (persons  go- 
ing a gunning  at  that  period,  or  for  any  other  object,  we  understand, 
were  charged  the  regular  price,  5 cents  per  mile,  or  87^  cents  the 
same  distance,)  is  it  not  reasonable  to  calculate,  that,  during  the  whole 
year,  with  the  allurements  of  business,  pleasure,  and  for  those  who 
prefer  it — attendance  at  camp  meetings,  an  amount  equal  to  twice  the 
white  population  of  Charleston  and  the  Neck,  would  be  induced  to 
travel,  especially  when  it  is  remembered  that  the  cost  is  not  to  exceed 
ONE  AND  A HALF  CENTS  PER  MILE,  or  oiie-half  of  what  w^as  charged  to 
the  camp  meetings  ? 

If  so,  this  will  give  us  16,470  M 2. 

32,940  coming  and  going — passengers,  - - 65,880 

Again,  let  us  take  the  periodical  migration  from  New-Orleans 
and  Mobile  to  the  North,  the  number  of  country  merchants 
from  Louisiana,  Mississippi,  Alabama,  Georgia,  Tennes 
see,  and  North  Carolina,  either  on  their  way  to  New  York 


7 


for  supplies,  or  to  our  city,  and,  making  a very  low  esti” 
mate,  say  twenty  thousand  each  way — eoming  and  going — 
and  we  have,  - - - . 40,000 

And,  to  make  up,  from  a population  of  upwards,  at  the  pre- 
sent lime,  of  three  hundred  thousand  whites,  our  balance, 
we  calculate  the  head  of  every  family  would  be  induced  to 
visit  us,  on  an  average,  once  during  the  year,  the  three 
hundred  thousand  whites,  calling  live  to  the  family,  would 
give  us  60,000  heads  of  families,  coming  and  going,  and 
we  have  - - - . - 120,000 


Number  of  passengers,  up  and  down,  for  twelve  months,  225,880 

We  have  purposely  omitted  taking  into  our  calculation  either  black 
or  colored.  We  have  been  told,  however,  that  it  was  quite  an  inte- 
resting sight,  last  April,  to  have  observed  the  decent  and  orderly  man- 
ner of  thousands  of  colored  and  black  persons  seated  in  the  cars,  on 
their  way  to  the  camp  meeting,  and  we  could  have  added  to  our  list 
by  taking  them  into  the  account. 

We  have  thus  attempted  to  show  from  whence,  at  a low  rate  of  fare, 
the  passengers  were  to  come.  We  will  now  proceed  to  the  next 
branch  of  our  inquiry,  and  show  the  etfects  of  their  coming  upon  the 
prosperity  of  Charleston, 

The  counties  in  Georgia  which  we  have  named  are  very  product- 
ive, and  contain  an  active  and  enterprising  population  ; the  furnishing 
of  whom  with  supplies,  would  give  an  immense  increase  to  the  retail 
business  of  our  city.*  Up  to  this  time — and  we  have  made  diligent 
inquiry  in  King  street — no  portion  of  that  trade  has  yet  reached 
them. 

We  have  collated,  from  the  statistical  returns  made  to  the  United 
States,  for  the  year  1840,  the  production  of  three  leading  articles  in 
these  counties — viz  : Wheat,  Corn  and  Cotton — and  we  find  they 
produced  533,548  bushels  Wheat, 

5,898,353  do  Corn. 

126,000  bbls.  Cotton  of  400  lbs.  each. 

Now  as  an  approximation  to  what  their  custom  would  be  to  the  re- 
tailers of  our  city,  we  take  the  population  of  1840 — 85,000  whites, 
and  divide  by  five,  and  we  will  have  17,000  families  ; each  family  pur- 
chasing from  us  annually  100  dollars,  would  give  us  a trade  of 
$1,700,000. 

Let  us  see  what  effect  this  would  have  first  upon  King  street. 

By  reference  to  the  return  of  sales  for  12  months,  ending  1st  of 
April  last,  we  find  that  84  retail  houses  in  that  street,  commencing 
from  Boundary  street  down  to  Horlbeck’s  Alley  on  the  one  side,  and 
from  Clifford  street  up  again  to  Boundary  on  the  other,  sold  $1,742,- 
294,  This  additional  increase  of  business,  amounting  to  100  per  cent, 
would  bring  competitors — they  would  want  stores — competition  for 

* Georgia  increased  her  population  12  per  cent  in  five  years,  comparing 
the  United  States  census  of  1840  with  the  State  census  of  1845.  and  the 
greatest  increase  in  the  State  was  in  her  northern  parts  in  the  vicinity  of 
her  rad  roads.  We  have  only  given  the  white  population  of  1840^ 


stores  would  advance  rents  ; rents  advancing  in  King  street,  would  act 
upon  Meeting  street,  which  would  again  re-act  on  Hayne  street. 
The  Hayne  street  merchants  not  being  able  to  hold  the  empty  houses 
in  King  and  Meeting-streets,  interrorem  to  the  eyes  of  their  landlords, 
they  would  have  to  stand  an  advance  of  rents  or  look  out  for  some 
other  place — thus  this  additional  retail  trade  would  advance  real  es- 
tate in  all  the  business  parts  of  our  city. 

Again.  What  would  be  the  effect  upon  the  value  of  the  hotels — 
the  Charleston,  Pavilion,  Victoria,  Planters,  &c.,  &c.  The  Rail 
Road  last  year,  brought  them  an  average  of  70  boarders  per  day.  Un- 
der a low  rate  of  fare,  bringing  the  number  we  calculate,  and  deducting 
those  going  from  their  homes  in  the  city  and  returning,  would  give 
80,000  boarders  per  annum,  or  nearly  220  per  day  ! 

That  a low  rate  of  fare  would  increase  travel, — stimulate  trade, — ad- 
vance real  estate  throughout  the  city,  cannot  well  be  doubted,  by  any 
one,  who  will  give  himself  the  trouble,  to  examine  the  facts  in  the 
case,  the  question  comes — can  we,  in  justice  to  the  stock-holders  of 
the  Rail  Road,  ask  this  reduction  ? Which  question  we  will  endeavor 
to  answer  in  the  affirmative,  in  one  of  our  future  numbers. 

In  our  next  we  will  give  proof  of  the  great  fall  of  real  estate  since 
1840,  and  trace  the  evil  to  what  we  consider  its  legitimate  cause — 
Rail  Road  legislation. 


No.  4, 

Gives  the  proof  of  the  fall  of  real  estate  in  Charleston,  and  traces 
the  evil  to  its  legitimate  cause,  Rail  Road  Legislation.  Shows 
that  the  policy  adopted  by  the  South  Carolina  Rail  Road 
Directors  has  crippled  the  Company,  while  it  has  imposed  an  un- 
necessary tax  of  Two  Hundred  Thousand  Dollars  per  annum 
upon  a portion  of  the  people  of  South  Carolina. 

In  our  last,  we  promised  to  show  the  great  fall  of  real  estate,  in 
the  business  parts  of  this  city  since  1840,  and  to  trace  the  evil  to  its 
legitimate  cause — Rail  Road  Legislation. 

We  will  now  take  up  the  first  branch  of  our  subject,  and  go  on  to 
give  the  proofs.  We  do  not  pretend  to  give  every  house,  but  will 
take  only  those  neighborhoods  in  King  street,  which  are  looked  upon 
as  the  best  location,  commencing  at  George  street  and  going  down  to 
Market  street.  If  we  were  to  go,  either  above  George,  or  below  Mar- 
ket streets,  the  fall  would  be  the  more  striking. 

To  proceed — Between  George  and  Society  streets  we  find  a house 
that  rented  in  1840  at  $800,  was  reduced  in  1841  to  $600,  in  1842  to 
$500,  in  1843  to  $450,  at  which  it  now  stands.  Another  in  the  same 
location  rented  in  1840  at  #900  annually  reduced  till  1843  to  $450, 
the  present  rent.  From  Liberty  lo  Wentworth  street  we  take  two 
houses,  the  one  renting  in  1840  at  #1200,  in  1841  at  $1000,  and  in 
1842  at  $800,  at  which  it  now  stands — the  other  rented  in  1841  at 
$1000,  in  1842  at  $800,  in  1843  at  $700,  the  present  rent.  From 


9 


Wentworth  street  to  Beaufain  we  find  rents  in  1840  $600,  annually 
reduced  till  1843,  to  $400,  the  present  rate.  From  Hasell  to  Market 
street,  we  have  a number  of  instances.  We  cite  two — one  renting  in 
1840  at  $1000,  in  1841  to  $800,  in  1842  to  600,  the  present  rent. 
Another  renting  in  1840  at  $1500  reduced  at  various  times  to  what  it 
now  stands,  $900. 

This  we  conceive  is  enough  for  that  street.  We  have  purposely 
omitted  giving  any  instances  in  King  street  where  the  occupant  being 
a wholesaler  had  removed,  and  given  place  to  a retailer.  Had  we  have 
done  so,  we  could  have  given  a few  like  the  following — house  rented 
in  1840  at  $2200,  now  renting  for  $850 — another  rented  in  1840  at 
$18,00,  now  renting  for  $600.  ^ 

We  will  now  go  into  Hayne  street.  This  property  consists  of  23 
houses,  of  which  20  are  occupied.  They  do  exclusively  a wholesale 
business.  It  is  owned — a few  exceptions  only — by  one  company,  and 
the  rent  of  one  is  a fair  criterion  for  all.  We  find  then,  in  that  street, 
rents  have  receded  from  $1600  in  1840  to  $1400  in  1841,  $1200  in 
1842,  $1100  in  1843,  and  $900  in  1844,  at  which  they  now  stand. 

On  East  Bay,  among  the  commission  merchants,  whose  principal 
business  is  the  city  trade,  we  find  a fall  in  rents,  as  follows  : $1500  in 
1839,  $900  1843,  $850  in  1845,  $750  in  1846,  and  would  not  now 
rent  for  over  $700. 

With  dwelling  houses  we  find  a much  greater  reduction  in  rents, 
and  we  have  come’to  the  conclusion,  “as  a fact  of  general  application,” 
that  this  city  has  lost  much  valuable  trade,  by  some  means  or  other, 
since  1840,  and  this  leads  us  to  the  second  branch  of  our  subject,  which 
is,  to  trace  this  fall  to  its  legitimate  cause — Rail  Road  Legislation. 

Now,  in  order  to  show  that  “Federal  legislation”  had  nothing  to  do 
with  it,  we  will  remark  that  the  compromise  act  was  passed  in  1833, 
to  run  for  ten  years,  by  which  successive  annual  reductions  were 
made  in  the  Tariff,  so  as  to  arrive  at  the  end  of  that  time — viz  : in 
1843 — to  what  was  agreed  upon,  by  all  parties,  as  the  revenue  stand- 
ard. This  act  was  kept  in  good  faith,  and  did  not  cease  to  Operate  till 
1843  ; before  which  time  the  fall  in  real  estate  in  this  city  had  taken 
place.  So,  Federal  legislation  cannot  be  made  to  father  the  great  fall 
in  real  estate  which  took  place  from  1840  to  1843. 

Besides,  from  the  Custom  House  returns  of  imports  into  this  city, 
it  will  be  found  that  from  the  passage  of  the  compromise  act,  in  1833, 
the  amount  of  imports  gradually  increased,  until,  from  some  cause  or 
other  operating  on  Charleston,  in  1839  and  ’40,  a fatal  blow  was  given 
to  our  importing  business,  from  which  it  has  never  recovered,  but  has 
annually  dwindled  away,  until  in  1845,  (the  latest  date  we  have  at 
hand,)  it  was  lower  than  it  has  ever  been,  since  the  termination  of  the 
last  war  with  Great  Britain  in  1815. 

We  annex  a table  from  1832  to  1845  : 


IMPORTS  INTO  CHARLESTON. 


1832  $1,213,725 

1837 

$2,510,860 

1842 

$1,349,465 

1833 

1,517,705 

1838 

2,318,791 

1843 

1,294,708 

1834 

1,787,267 

1839 

3,086,476 

1844 

1,131,516 

1835 

1,891,805 

1840 

2,058,870 

1845 

822,602 

1836 

2,806,331 

1841 

1,557,431 

The  queslion  returns  upon  us  what  was  the  cause  ? We  contend, 
that  the  cause  was  a prohibitory  tariff,  imposed  in  1839  and  1840,  by 
the  direction  of  the  South  Carolina  Road  upon  the  farmers,  whose 
channel  of  intercourse  wirh  our  city,  was  their  Rail  Road  ; which  ta- 
riff prevented  them  from  trading-  with  the  city,  and  forced  them  to 
trade  in  the  country  villages,  by  giving  the  country  merchant  a protec- 
tion of  from  25  to  40  per  cent,  to  the  detriment  of  the  interests  of  the 
Slate  and  of  the  city  hundreds  of  thousands  of  dollars  annually  ; and  to 
the  in  jury  of  the  Stockholders  of  the  Rail  Road  Company,  one  hundred 
thousand  dollars  per  annum. 

As  we  will  have  to  make  reference  to  the  Rail  Road  returns,  we 
give  a table : 


Years 


Rale  per  Mile.  Number  of  Passengers^ 


1838  . - 5 cents, 

1839  - -71“ 

1840  - - “ 

1841  - - 0 “ 

1842  - . 6 “ ~ 

1843  - . 6 “ 

1844  - - 5 “ 

1945  - - 5 » 

1846  - - 5 “ - 


44,487 
37,283 
29,279 
35,141 
33,925 
37,740 
54,146')  ^ 
56,785  I 
64,136  J 


It  will  be  found  by  the  above  table  that  in  the  year  1838,  the  rate  of 
passenger  fare  was  five  cents  per  mile. 

The  Directors  of  the  Road  never  considering  that  the  rates  were  too 
high,  but  thinking  every  body  came  that  could  come,  in  such  a sparsely 
populated  country,  increased  their  rates  of  passage  50  per  cent,  and 
continued  that  enhanced  fare  for  two  years.  The  consequence  was, 
those,  and  those  only  travelled  the  Road  that  could  not  help  them- 
selves, at  that  particular  time,  and  the  number  of  passengers  fell  off  the 
firstyear  16  per  cent.  The  second  year  of the  seven  and  a half  cents 
experiment,  gave  them  an  additional  decline  of  20  per  cent  from  the 
previous  year,  and  the  policy  was  partially  abandoned.  They  found 
they  had  taken  the  wrong  track,  and  began  to  go  backwards.  Instead 
of  coming  right  down  below  the  five  cent  point,  (at  which,  experience 
had  taught  them,  they  could  not  get  along,)  they  came  down  gradually 
to  six  cents,  which  they  continued  for  three  years, — then  to  the  five 
cents,  at  which  they  now  remain,  except  on  extra  occasions,  and  for 
particular  purposes.  What  has  been  the  result  ? 

If  we  examine  the  Rail  Road  returns,  we  will  find  the  increase  of 
passengers,  at  5 cents  per  mile,  from  1838  to  J846  inclusive,  has  been  at 
a snail’s  pace  of  less  than  hooper  cent  per  annum.  Now  the  exten: 
sion  of  the  Georgia  Rail  Roads,  it  would  reasonably  be  supposed, 
should  account  for  more  than  that  increase,  and  we  are  therefore  war- 
ranted in  the  conclusion,  that  so  far  from  any  increase  of  passengers 
from  South  Carolina,  there  is  abundant  reason  to  believe  a very  great 


* During- each  of  these  three  years  upwards  of  ten  thousand  passengers 
were  carried,  within  ten  days,  at  a fire  of  two  and  three  cents  per  mile  for 
whites. 


11 


decrease  has  taken  place.  If  the  extension  of  the  Rail  Roads  leading 
from  Augusta,  from  the  year  1838  to  1846  inclusive,  has  not  increased 
the  travel  on  the  South  Carolina  Rail  Road,  in  an  exceedingly  greater 
degree  than  two  per  cent  per  annum,  then  all  hopes  that  any  further 
extension  will  materially  benefit  that  Road,  should  be  given  up  as  de- 
lusive ! 

If,  however,  on  the  other  hand,  it  has  greatly  increased  the  travel, 
then  the  passengers  from  South  Carolina  have  decreased  to  an  alarm- 
ing extent,  our  position  is  sustained,  and  the  sooner  the  present  high 
price  system  is  abandoned,  and  the  low  price  is  substituted,  the  better 
for  the  Rail  Road,  the  City,  and  the  State. 

When  the  passenger  rates  were  increased,  whom  do  you  suppose 
v/ere  prevented  from  coming  to  the  city  ; the  country  merchant  whose 
purchases  of  thousands  of  dollars  were  increased  by  the  Rail  Road  fare 
about  one  per  cent, — or  the  farmer,  who  purchasing  on  an  average 
about  fifty  dollars,  would  be  saddled  with  a tax,  in  the  shape  of  a Rail 
Road  fare  of  40  per  cent  1 

This  prohibitory  tariff  has  built  up,  in  many  of  the  villages  in  our 
State,  mammoth  establishments;  which  being  nurtured  by  the  foster- 
ing hand  of  Rail  Road  legislation,  have  monopolized  the  trade  of  that 
portion  of  the  State,  whose  channel  of  intercourse  with  our  city  is  the 
Rail  Road,  and  has  built  up,  at  the  expense  of  the  many^  fortunes  for 
a few  country  storekeepers,  and  their  Commission  Agents  in  this  city. 

But  it  will  be  said  what  is  the  differtnee  to  the  city,  provided  the 
same  amount  of  goods  are  sold  ? We  answer — a great  difference,  as 
we  shall  show,  by  giving  an  illustration,  between  the  sales  made  by 
the  wholesaler,  and  the  same  amount  sold  by  the  retailer. 

The  Hayne  street  merchants,  for  instance,  sold  the  last  year,  mer- 
chandise to  the  amount  of  $2,800,000.  They  occupied  20  stores, 
kept  in  employment  120  persons,  and  paid  a rental  of  $18,000. 

The  same  amount  of  goods,  sold  at  retail,  taking  the  average  of  King 
street  as  a criterion,  would  require,  140  stores,  420  persons,  and  pay 
a rental  of  $56,000. 

This  increase  of  the  retail  trade,  wmuid  enhance  the  value  of  real 
estate,  throughout  the  city,  to  an  extent  that  would  add  very  considera- 
bly to  the  income  of  our  city,  and  eventually  free  her  from  all  her  em- 
barrassments. 


NO.  5, 

Examines  the  question  and  ansivers  it  in  the  affirmative,  giving  the 
proofs.  Can  the  Directors,  in  justice  to  the  stockholders  of  the 
South  Carolina  Rail  Road  Company,  reduce  the  jure  and  freight  ? 
Probable  reason  why  they  do  not  do  it  at  once,  given. 

In  our  last  we  gave  the  proofs  of  the  great  fall  in  real  estate  in  the 
business  parts  of  this  city,  and  traced  it  to  its  legitimate  cause — Rail 
Road  legislation.  We  proceed  now,  as  we  then  promised,  to  answer 
this  question  in  the  affirmative  : Can  the  Directors,  in  justice  to  the 


12 


Stockholders  of  the  South  Carolina  Rail  Road,  reduce  the  fare  to  the 
point  we  named — viz  ; Two  Dollars  through  ? 

VVe  will,  at  the  same  time,  show  that  the  rates  of  down  freight  can 
be  materially  reduced  with  benefit  to  the  Company. 

To  place  the  matter  in  a clearer  light,  we  will  first  give  our  esti- 
mate, and  then  proceed  to  show  the  grounds  upon  which  that  estimate 
is  founded. 

ESTIMATE  FOR  DOWN  FREIGHT. 


350.000  bales  of  Cotton,  at  50  eents  per  bale,  - $175,000  00 

1,000,000  bushels  Grain, — viz;  Corn,  Wheat,  Peas, 

and  Rye, — at  5 cents  per  bushel,  - • - 50,000  00 

200.000  bbls.  Flour,  at  25  cts.  per  bbl.  ...  50,000  00 

Miscellaneous  articles — such  as  Pork,  Bacon,  Lard, 

Live  Stock,  Southern  Domestics,  Leather,  Hides, 

Feathers,  Hay,  Iron,  &c.,  ...  - 50,000  00 


UP  AND  UP  AND  DOWN  FREIGHTS. 

Up  Freight,  say,  same  as  down  Freight,  - - 325,000  00 

Mails, 40,000  00 

225,000  passengers,  at  an  average  of  $1  25,  - - 281,250  00 


Total  gross  receipts,  . . . $971,250  00 

Deduct  interest  on  Sterling  Bonds,  the  same  as  paid 

last  year,  .....  108,530  00 


$862,720  00 

Deduct  current  expenses — say  53  per  cent  on  gross 

receipts,  ...  . . 514,700  00 


Nett  profits,  ....  $347,960  00 

Or,  10  per  cent,  to  divide  on  - $3,300,000 

Viz  : South  Carolina  Road,  2,600,000 
Camden  Branch,  - - 700,000 

Now  for  the  grounds  upon  which  our  estimate  is  founded.  With- 
out taking  into  account  the  additional  Cotton  that  would  seek  this 
channel  to  reach  the  seaport,  by  the  iow  passenger  as  well  as  freight 
fare,  (which  we  would  be  fully  justified  in  doing,  as  Georgia  produ- 
ces one-fourth  the  average  cotton  crop  of  the  country,)  we  will  just 
assume  that  the  South  Carolina  Road  will  get  what  now  comes  to 
Augusta,  Columbia  and  Camden. 

Augusta  and  Hamburg  received  the  last  year,  about  200,000  bales. 
Columbia,  on  an  average,  receives  100,000  “ 

Camden,  and  its  neigliboring  landing,  50,000  ‘‘ 


Making,  at  once,  our  estimate  of  350,000  bales. 

Independent  of  this,  the  South  Carolina  Road  brought  upwards  of 

20,000  bales  Cotton  on  the  way  route  in  1846,  and  the  reduction  in 
freight  will  bring  a larg'^  amount  of  Cotton  on  this  route  which  now 
seeks  a market  by  boats.  W^e  claim  all  the  Cotton  now  received  at 
the  termini,  (Augusta  and  Hamburg,  Columbia  and  Camden,)  because, 
at  50  cents  per  bale,  no  opposition  by  steam  or  other  boats  need  be 


13 


feared ; it  will,  at  once,  paralyse  all  opposition,  and  secure  the  whole 
Cotton  carrying  trade. 

Our  next  item  is  Grain,  viz  : Corn,  Wheat,  Peas  and  Rye,  and  to 
any  one  that  knows  what  a grain  producing  country  the  upper  part  of 
Georgia  is, the  estimate  would  be  considered  very  small;  for  we  can 
name  counties  in  and  near  the  line  of  Rail  Road  from  Augusta  to  Dal- 
ton, that  produced  in  1840,  five  millions  of  bushels  of  Corn  alone,  so 
without  calling  upon  Tennessee  or  our  State  for  a single  bushel,  our 
compliment  is  made  up  with  this  single  article.  As  an  instance  of 
what  Tennessee  could  do,  at  a low  rate  of  fare,  we  will  state,  (and  we 
have  it  on  good  authority,)  that  one  hundred  thousand  bushels  of  Corn 
was  bagged,  with  the  intention  of  sending  it  to  our  market  this  season, 
when  the  owners  of  it  found  out,  that  the  South  Carolina  road  in  com- 
bination w'ith  the  Georgia  roads,  had  (after  publishing  to  the  world  in 
October  last,  that  they  would  carry  Corn  and  Wheat  at  21  cents 
through,)  raised  their  rates  83^  per  cent,  or  to  28  cents  through,  with- 
out giving  a particle  of  reason  for  the  change.  Is  this  the  way  to  get 
the  custom  of  the  growers  of  Grain  in  Georgia  and  Tennessee,  and  in- 
duce them  to  give  implicit  confidence  to  the  published  rates  of  char- 
tered incorporations  ? ' * . 

The  price  of  Corn  in  Baltimore,  from  1840  to  1845  both  inclusive, 
when  its  value  depended  chiefly  on  the  home  demand,  averaged  fifty 
cents  per  bushel.  With  the  certainty  of  a steady  demand  hereafter, 
(a  writer  in  the  Westminster  Review  for  October,  1846,  thinks  that 
the  demand  for  Great  Britain  alone,  in  the  course  of  a few  years,  will 
be  jive  times  greater  than  that  for  Wheat,)  that  price  can  wdth  some 
degree  of  certainty  be  depended  upon  as  the  minimum  price,  and  the 
old  rates  through,  viz : twenty-one  cents,  without  variation,  would 
enable  the  roads  to  depend  upon  the  freight  of  at  least  one  million  of 
bushels  now,  finding  its  way  to  the  Charleston  market  alone,  with  the 
prospects  of  a very  great  increase  hereafter. 

This  rate  of  freight  the  South  Carolina  and  the  other  Georgia  Roads 
should  immediately  adopt,  if  for  no  other  reason,  than  as  an  atonement, 
for  what  certainly  must  be  looked  upon  as  an  implied  breach  of  faith 
on  their  part,  by  the  increase  of  their  rates  on  the  1st  March  last. 

Our  next  article  is  Flour.  Georgia  and  Tennessee  could  furnish 
us  the  quantity  if  necessary,  without  looking  either  to  Camden  or 
Columbia  for  a single  barrel. 

Under  our  miscellaneous  head  we  have  been  so  moderate,  that  we 
do  not  think  it  necessary  to  go  into  particulars. 

Our  next  item  is  up  freight ! 

When  it  is  remembered  that  almost  every  dollar  of  the  down  freight 
is  invested  in  produce  to  be  returned  to  the  country,  that  the  steam- 
boats not  being  able  to  compete  with  the  rail  road  for  the  down  freight, 
will  have  to  abandon  the  business,  by  which  all  the  up  freight  they 
formerly  carried  will  be  driven  to  the  road ; our  estimate,  wm  think,  is 
within  bounds : besides,  it  will  be  found  by  reference  to  their  state- 
ments, that  what  the  down  freights  have  produced  the  South  Carolina 
Road  for  the  last  three  years,  the  amount  of  their  up  freights  have 
equalled. 


ft 


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The  mails  is  a matter  of  certainty,  and  for  the  225,000  passengers, 
we  must  refer  to  our  article  No.  8,  and  which  is  devoted  exclusively  to 
the  consideration  of  that  question. 

We  cannot,  however,  pass  over  this  subject  without  meeting  an  ob- 
jection that  is  generally  urged,  and  upon  which  great  stress  seems  to 
be  laid,  viz  : that  the  Rail  Road,  cannot  afford  to  take  passengers  at 
the  price  we  named,  that  is,  at  the  rate  of  two  dollars  through.  Should 
we  admit  the  charge,  if  would  follow  as  an  inference  that  the  Rail 
Road,  in  carrying  rich  men,  as  they  do  at  present,  for  one  dollar 
THROUGH,  absolutely  allow  a gratuity  to  the  rich  for  travelling  on  their 
road,  and  that  gratuity  is  precisely  the  difference  between  what  they 
can  afford  to,  and  the  price  at  which  they  do  carry  them. 

But  the  impression  that  they  cannot  afibrd  to  carry  passengers 
through  for  two  dollars  is  an  erroneous  one,  and  we  shall  show  it,  the 
South  Carolina  Rail  Road  Company’s  statements  being  our  witnesses 
in  the  case.  We  will  first  remark  that  a train  of  300  passengers  with 
their  baggage  will  weigh  about  30  tons,  which  is  about  one-fourth  of 
the  load  of  a fifteen  ton  engine  on  the  South  Carolina  Road. 

By  reference  to  the  report  of  the  Auditor  of  the  South  Carolina 
Road  for  1846,  (tabular  statements  No.  6 and  7,)  it  will  be  found  that 
tne  cost,  including  every  expense  from  the  salary  of  the  President 
down  to  the  most  trifling  item,  for  each  mile  run  on  the  South  Caroli- 
na Rail  Road,  in  1846,  was  about  90  cents, — consequently  to  run  the 
whole  distance  of  the  road  either  to  Hamburg  or  Columbia,  would  be 
136  miles,  at  90  cents,  $112.40 — one  hundred  and  twelve  dollars  for- 
ty cents  for  the  trip.  Now  whether  they  carry  one  passenger  or 
THREE  HUNDRED,  the  difference  in  expense  would  not  be  materially 
altered,  so  that  settles  the  question  at  once,  they  can  afford  to  do  it — 
for  the  first  hundred  passengers  they  carry,  at  our  rates,  more  than 
pays  their  expenses — the  balance  is  all  clear  profit. 

The  current  expenses,  we  have  put  down  at  53  per  cent  of  the  gross 
receipts,  which  was  the  proportion  the  last  year  on  their  road.  This 
allowance  is  very  liberal,  for  we  find  the  current  expenses  on  the 
Western  Rail  Road  of  Massachusetts  for  1846,  was  but  47  per  cent — 
if  they  would  only  give  the  difference  in  salaries  to  their  clerks,  we 
think  the  South  Carolina  Road  would  act  wiser,  and  be  the  bettei 
served  for  it. 

We  have  thus  got  through  with  the  grounds  upon  which  our  esti- 
mate is  founded,  and  it  will  be  seen  that  we  make  a dividend  of  ten 
percent  per  annum. 

With  this  material  reduction  in  rates,  the  Company  should  abolish 
their  Insurance  guarantee,  a risk  undertaken  by  them,  which  admit- 
ting they  have  the  legal,  they  have  not  the  moral  right  to  assume  ; for 
they  have  not  any  surplus  capital  to  meet  the  contingency  of  a 
heavy  loss,  while  they  take  single  risks  to  an  amount  that  no  Insu- 
rance Company  in  the  United  States,  with  a million  of  dollars  of  paid 
up  capital,  could  feel  themselves  justified  in  taking.  This  policy  while 
continued,  will  always  operate  as  an  incubus  on  the  stock  of  the  Com- 
pany, for  prudent  men  are  not  apt  to  seek  hazardous  risks  as  a perma- 
nent investment  for  their  surplus  capital. 


15 


Now  it  may  be  said — Admitting  your  data  to  be  correct,  and  tlia^ 
the  stock  invested  instead  of  being  a contingent  (and  we  use  the  word 
contingent  because  the  liability  of  the  Company,  as  insurers,  may  ab- 
sorb every  cent  of  the  dividends  for  years)  5|  per  cent  stock  should 
become  a safe  10  percent  one, — is  it  not  clearly  the  pecuniary  inte- 
rest of  the  Company,  at  once,  to  bring  the  fare  and  freight  down  to 
that  point  which  would  as  early  as  possible  effect  such  a change  ? 

We  answer,  looking  to  their  pecuniary  interest  alo7ie,  it  may  not  be. 
and  for  the  proof,  we  refer  to  the  proceedings  of  the  Stockholders  of 
the  Road  at  their  annual  meeting  in  February,  1847.  At  page  12,  wo 
find  the  following  resolution,  which  was  referred  to  the  Board  of  Di- 
rectors of  the  Rail  Road  with  authority  to  act. 

^^JResolved,  That  the  President,  or  a Committee  from  the  Board  of 
Directors,  be  instructed  to  treat  for  the  purchase  of  the  entire  stock  held 
by  the  State,  and  that  they  be  authorised  to  give  par  for  the  same,  if  it 
can  be  obtained  on  a credit;  the  interest  of  which  not  to  exceed  five 
per  cent  per  annum.” 

Looking  to  ihe pecuniary  interests  of  the  stockholders,  would  the 
Directors  be  likely  to  do  anything,  at  present,  to  advance  the  price  of 
a stock,  which  they  are  authorized  to  treat  for  with  the  next  Legisla- 
ture, AT  PAR,  and  ON  A CREDIT  loo,  at  an  interest  not  to  exceed  five  per 
cent  per  annum  ? Certainly  not. 

See  what  a splendid  operation  it  would  be  if  they  could  only  man- 
age to  carry  it  out. 

The  stock  being  obtained  from  the  Legislature,  say  on  a credit  of 
two  years,  and  the  low  price  policy  adopted  with  the  abolition  of  their 
liability  as  insurers,  the  Company  would  be  enabled  to  declare  an  an- 
nual dividend  of  ten  per  cent  before  the  expiration  of  the  credit,  and  sell 
the  stock  at  an  advance  of  fully  fifty  per  cent — thus  putting  into  the 
funds  of  the  Company  the  snug  sum  of  three  hundred  thousand  dol- 
lars. 

Now,  should  they  at  once  reduce  fare  and  freight,  all  hopes  of  ob- 
taining the  stock  held  by  the  State,  at  par,  and  on  a credit  too,  would  be 
blown  to  the  winds.  The  stock  [if  the  interests  of  the  State  were  con- 
sulted] should  be  held  for  twelve  months  after  a reduction  of  fare  had 
been  in  operation  and  fairly  tried,  and  then  sold  in  small  parcels  for 
cash  to  the  highest  bidder  at  public  auction.  By  this  means,  the  Stale 
of  South  Carolina  would  be  partly  recompensed  for  the  fostering  care 
she  has  always  manifested  toward  her  adopted  and  petted  child — the 
South  Carolina  Rail  Road. 

We  have  now  closed  our  articles  lor  the  present.  We  will  state  in 
conclusion  that  our  only  object  has  been  to  promote  the  interests  of  our 
native  city,  and  make  her  at  once,  what  she  is  destined  by  the  revolu- 
tionary aid  of  Rail  Roads  yet  to  be,  “The  Queen  City  of  the 
South.” 


FREE  TRADE. 


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